The Central Bank of Nigeria (CBN) says revenue flows into the federation account stood at N2.309tr in the first quarter of 2019, a 30.5% drop when compared to the projection in the national budget for the period.
The amount was also 4.2% lower than N3.321tr recorded in the corresponding period of 2018, a situation blamed on “the shortfall in receipts from both oil and non-oil revenue components in the review quarter.”
According to the CBN’s Economic Report for the period, gross oil receipt stood at N1.413tr, representing 61.2% of total revenue, which was below both the proportionate quarterly budget estimate and the receipts in the preceding quarter by 26.4% and 3.5%, respectively.
“The decline in oil revenue relative to the proportionate budget estimate was due to shortfalls in crude oil production and exports, arising from maintenance operations at the various NNPC terminals.”
Non-oil revenue, in the period under review, fell below that of the prior quarter at N896.04bn or 38.8% of the total from N1.4tr or 36% of the total, just as it fell below the level in the preceding quarter by 5.4%.
“The lower nonoil revenue relative to the proportionate quarterly budget estimate was due to shortfalls in receipt from Federal Government Independent Revenue and Corporate Tax,” the report added.
After the statutory deductions and transfers of N435.51bn and N395.81bn, respectively, a net sum of N1.478tr was retained in the Federation Account, with the Federal Government receiving N709.03bn, while the State and Local governments getting N359.63bn and N277.26bn,
Federal Government retained an estimated N798.82bn, below the proportionate quarterly budget estimate and the receipts in the preceding quarter by 57.7% and 28.8%, respectively.
Estimated Federal Government expenditure for the review period at N1.197tr was below the proportionate quarterly budget estimate of N2.376tr by 49.6% and the level in the preceding quarter by 34.8%. Recurrent expenditure, capital expenditure, and transfers constituted 71.4%, 23% and 5.6% of the total expenditure, respectively.
A breakdown of the recurrent expenditure showed that non-debt obligation was 61%, while debt service payments accounted for 39% of the total, following which the fiscal operations of the Federal Government resulted in an estimated deficit of N398.22bn, compared with the proportionate quarterly budget deficit of N488.62bn.